OLD MACHINERY SALE
This query is : Resolved
17 January 2026
SIR,
WE HAVE SOLD SOME OLD MACHINERIES ON PAYMENT OF GST ON TRANSACTIONAL VALUE. NOW THE PROBLEM IS THAT IN THE ACCOUNTS A PROFIT[AS PER INVCOME TAX] IS SHOWING AGAINST THE ABOVE SALE. MY QUESTION IS WHETHER WE HAVE TO PAY GST ON THIS PROFIT ALSO.
PLEASE ADVISE.
REGARDS
WE HAVE SOLD SOME OLD MACHINERIES ON PAYMENT OF GST ON TRANSACTIONAL VALUE. NOW THE PROBLEM IS THAT IN THE ACCOUNTS A PROFIT[AS PER INVCOME TAX] IS SHOWING AGAINST THE ABOVE SALE. MY QUESTION IS WHETHER WE HAVE TO PAY GST ON THIS PROFIT ALSO.
PLEASE ADVISE.
REGARDS
Dhirajlal Rambhia
(Expert)
17 January 2026
No. Under GST law, tax is primarily levied on the transaction value (the actual price paid or payable), not on the profit shown in your books.
Income tax profit, calculated after depreciation on the machinery's written-down value (WDV), differs from GST's transaction value basis and does not trigger extra GST liability. GST focuses solely on the sale consideration received, not on taxable income or gains under IT Act.
Income tax profit, calculated after depreciation on the machinery's written-down value (WDV), differs from GST's transaction value basis and does not trigger extra GST liability. GST focuses solely on the sale consideration received, not on taxable income or gains under IT Act.
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